If you are starting a business it is vital that you have a business plan. I have personally witnessed the success and failure of a lot of businesses, those that had well drawn business plans and reviewed them often were those that often succeeded! A business plan ensures that your business is viable, that you will have sufficient cash to meet business needs, highlight any potential weaknesses of your business and help give you vision and direction.
In my Business Planning Series I will cover the financials of business planning, including sales and expenses forecasts, cash flow forecasts, projected profit and loss statements and much more.
Out of everything that I have covered on my Bookkeeping YouTube Channel and on my Accounting Website, business planning is probably the most complicated (even more so than bank reconciliations!). If you feel that you need some help, please consider the Bookkeeping Master creating the financials of your business plan - email him for further details (email@example.com)
Most of the titles given to financial documents, reports and statements are usually self-explanatory, the sales forecast, forecasts sales for the business! Generally business plans are created for a 3 year period with a separate report or statement for each year - the sales forecast then would have 3 forecasts, 1 for each year.
Forecasting can be a bit of a guessing game so you are best making educated decisions, using common sense and having reasoning behind each figure listed on the forecast (this goes for other forecasts and statements too).
Creating a Sales Forecast using Excel is split into the following 3 videos